Options Traders Blast DoorDash Stock on Acquisition Buzz

The company also reported a third-quarter revenue beat

Digital Content Manager
Nov 10, 2021 at 10:32 AM
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The shares of DoorDash Inc (NYSE:DASH) are up 13.3% to trade at $217.49 at last check, after the company said it bought international food delivery name Wolt for $8.1 billion. The news comes on the heels of its third-quarter revenue beat, which is helping the stock brush off worse-than-expected quarterly losses per share. 

The brokerage bunch is already chiming in on the results. The security earned at least eight price-target hikes this morning, including one from Needham to $270 from $240. However, it also received a downgrade to "hold" from "buy," as well as a price-target cut to $233 from $243 at Gordon Haskett. Analysts were split towards DASH coming into today, with nine calling it a tepid "hold," while eight said "buy" or better.

Today's bull gap has DoorDash stock trading at its highest level since September, when it scored a closing high. Still, overhead pressure at the $225 level is keeping the Wall Street newbie from its Jan. 27, all-time high of $256.09. In the last six months, DASH has added a whopping 93.7%.

The options pits are bursting with activity in response. So far, 24,000 calls and 16,000 puts have crossed the tape, which is 14 times what is typically seen at this point. Most popular is the weekly 11/12 230-strike call, followed by the 220-strike call in the same series, with new positions being opened at both. This means options traders expect additional upside for DASH by the end of the week, when these contracts expire.

 

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